Dow Jones – Elliott Wave Setup Near All-Time Highs

The Dow Jones Industrial Average has printed a Wave 3 high at 45,757.84, with the structure suggesting that an internal Wave 4 pullback is unfolding. Once this is complete, a final Wave 5 push could follow, potentially driving the index into fresh all-time highs.

Alternatively, the recent high at 45,757.84 may already mark the completion of Wave 5. If that is the case, the corrective phase has already begun.

On the RSI, a clear bearish divergence is visible: while price has moved higher, momentum has failed to confirm. This often signals that the current leg of the rally is losing steam.

Based on Elliott Wave guidelines, the entire advance from 34,611 can be counted as either:

• Wave 1 of a new bullish impulse, or
  
• Wave A of a larger corrective structure.
  

In both cases, a corrective phase will follow once Wave 5 completes. Standard retracements are typically in the 0.382–0.618 Fibonacci zone, but the exact levels can only be projected after the Wave 5 top is confirmed.

⚠️ Invalidation Note: The current view expects a correction after the final Wave 5. However, if the index continues to trend strongly higher without respecting this sequence, the bearish setup is invalidated and the wave structure must be re-evaluated.

Summary:

• Current status: Wave 3 high at 45,757.84.
  
• Expecting: Wave 4 pullback, then a Wave 5 push to new highs.
  
• After Wave 5: Retracement likely in the 0.382–0.618 zone (levels to be projected once Wave 5 is fixed).
  
• Risk: Invalidation if price keeps trending higher without corrective behavior.
  

Disclaimer: This analysis is for educational purposes only and does not constitute investment advice. Please do your own research (DYOR) before making any trading decisions.